S&P praised the county for recording a 0.2 percent general fund surplus and a 0.9 percent surplus for all governmental funds during 2013. The rating service labeled the county’s budgetary flexibility as being “very strong,” noting the county will maintain an estimated reserve fund balance of $28.7 million at the conclusion of 2014.

S&P also lauded the county’s financial management, citing conservative budget assumptions, weekly financial monitoring, monthly reporting to county council, annual updates to the five-year capital improvement plan and a formal reserve policy. However, S&P noted the county lacks debt and investment management policies and does not perform multi-year projections on operating revenue and expenditures.

The county’s liquidity and debt and contingent liabilities also garnered approval. The county has about $210.7 million of debt issued with the Delaware Valley Regional Finance Authority, including $49.7 million that is variable-rate. The county also contributed 100 percent of its $7.1 million pension contribution required in 2013; its pension trust fund is 95 percent funded.

Tom McGarrigle, chairman of the all-Republican Delaware County Council, added that the county continues to implement its Local Economic Development plan, a 10-year strategy that seeks to retain and recruit businesses, repurpose underutilized properties, maximize Delaware River opportunities and enhance globe trade, among other objectives.

McGarrigle said the county’s finances would be better if the state government revamped the funding formulas for Fair Acres Geriatric Center and the county’s 911 Center — two of the budget’s biggest expenses.

“If the government would correct them, we’d be in pretty good shape,” said McGarrigle, who is running against Democrat John Kane for the open seat in the 26th Senatorial District.

Kane, the business manager for Plumbers Union Local 690, called the county’s affirmed rating “good news” in a statement released by his campaign that also noted Pennsylvania’s credit rating was downgraded.

“This is independent validation of the failed policies of the (Gov. Tom) Corbett administration and the Legislature,” Kane’s statement said. “That is why we need change in Harrisburg — to renew the trust of the markets and to renew the trust of the people in Pennsylvania.”

David Landau, chairman of the Delaware County Democratic Party, declined to comment on the county’s affirmed rating.

Moody’s Investors Service dropped the Pennsylvania’s credit rating from Aa2 to Aa3, leaving it ranked among the six worst states ranked by the rating service. Moody’s ranks 47 states with general obligation debt. Pennsylvania has $11.1 billion of general obligation debt.

The downgrade was the state’s third — the second by Moody’s — in two years. Moody’s cited Pennsylvania’s growing structural deficit and weak reserves. The rating service also noted that the state’s relatively slow economic growth is unlikely to keep pace with its growing public pension liabilities.

The Associated Press contributed to this article.

About the Author

John Kopp is a reporter for the Delaware County Daily Times, who covers state and county politics. Follow him on Twitter @DT_JohnKopp Reach the author at jkopp@delcotimes.com
or follow John on Twitter: @DT_JohnKopp.